Root (NASDAQ:ROOT) Shares Down 4.9% – Time to Sell?

Root, Inc. (NASDAQ:ROOT)’s stock price traded down 4.9% on Monday . The stock traded as low as $69.62 and last traded at $69.63. 36,343 shares were traded during mid-day trading, a decline of 93% from the average session volume of 539,282 shares. The stock had previously closed at $73.22.

Analyst Upgrades and Downgrades

Several research analysts have commented on ROOT shares. UBS Group upped their target price on shares of Root from $61.00 to $67.00 and gave the stock a “neutral” rating in a research report on Monday, November 4th. Keefe, Bruyette & Woods restated an “outperform” rating and issued a $90.00 target price (up from $82.00) on shares of Root in a research report on Tuesday, November 5th. Citizens Jmp lowered Root from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 22nd. Jefferies Financial Group reduced their price objective on shares of Root from $84.00 to $72.00 and set a “buy” rating for the company in a report on Wednesday, October 9th. Finally, Cantor Fitzgerald raised Root to a “strong-buy” rating in a research note on Thursday, October 3rd. Six analysts have rated the stock with a hold rating, two have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $59.13.

Root Trading Up 0.2 %

The company’s 50-day moving average is $75.66 and its 200 day moving average is $58.55. The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 1.65. The firm has a market cap of $1.10 billion, a PE ratio of -59.16 and a beta of 2.47.

Root (NASDAQ:ROOT) last posted its quarterly earnings results on Wednesday, October 30th. The company reported $1.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.61) by $1.96. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. The business had revenue of $305.70 million during the quarter, compared to analyst estimates of $272.77 million. During the same period in the prior year, the firm earned ($3.16) earnings per share. The firm’s revenue was up 165.1% compared to the same quarter last year. As a group, sell-side analysts predict that Root, Inc. will post -1.2 EPS for the current year.

Insider Buying and Selling at Root

In other news, major shareholder Meyer Malka sold 50,959 shares of Root stock in a transaction dated Thursday, October 31st. The stock was sold at an average price of $84.78, for a total transaction of $4,320,304.02. Following the completion of the sale, the insider now directly owns 102 shares in the company, valued at $8,647.56. The trade was a 99.80 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Julie Szudarek sold 2,000 shares of the business’s stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $96.33, for a total value of $192,660.00. Following the completion of the sale, the director now directly owns 15,003 shares of the company’s stock, valued at approximately $1,445,238.99. The trade was a 11.76 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 246,905 shares of company stock valued at $20,440,479 in the last quarter. Company insiders own 11.71% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in ROOT. Hood River Capital Management LLC bought a new position in shares of Root in the second quarter valued at approximately $9,547,000. Driehaus Capital Management LLC acquired a new position in Root during the 2nd quarter worth $9,154,000. Bank of New York Mellon Corp bought a new stake in Root during the second quarter valued at about $1,280,000. XTX Topco Ltd acquired a new stake in shares of Root in the third quarter valued at about $645,000. Finally, FMR LLC increased its stake in shares of Root by 966.2% in the third quarter. FMR LLC now owns 18,040 shares of the company’s stock worth $682,000 after purchasing an additional 16,348 shares during the period. Institutional investors and hedge funds own 59.82% of the company’s stock.

Root Company Profile

Root, Inc provides insurance products and services in the United States. The company offers automobile, homeowners, and renters insurance products. It operates a direct-to-consumer model; and serves customers primarily through mobile applications, as well as through its website. The company's direct distribution channels also cover digital, media, and referral channels, as well as distribution partners and agencies.